Emirates Vehicle Market in 2026 is struggling. Q1 sales dropped by 19.1%, with Jetour being the only top 5 brand to report gains. BYD impressed by surging 970.1% and driving EV expansion though still not securing a spot in the top 10.
Economic Environment
The UAE’s economy is projected to remain strong in 2026, with GDP growth accelerating to 5.0%, supported by both hydrocarbon and non-hydrocarbon sectors, alongside low inflation and a stable currency peg that boosts investor confidence. Expansionary fiscal policy, a large federal budget, and a solid current account surplus reflect continued economic resilience and diversification.
Equity markets also show positive momentum: Abu Dhabi (ADX) is expected to see steady earnings growth led by real estate and supported by attractive valuations, while Dubai (DFM) benefits from strong returns, robust real estate demand, and high dividend yields. However, risks remain, including lower oil prices, global uncertainties, and challenges in executing large diversification projects.
Automotive Industry Trend and Outlook
UAE’s vehicle market, the 3rd largest in the GCC and Levant region, followed the negative trend that defined the area as a whole in Q1 of 2026. Notably, it reported losses of 19.1% to 69,320 units sold.
Brand-wise, the leader was still Toyota losing 15.6% compared to the prior year and with a share of 22.3%. Nissan in 2nd fell 17.8% to a 14.7% share, followed in 3rd by Mitsubishi with a 7.5% share (-11.5%). Jetour ranked 4th, up by 30.6%, followed by MG in 5th, down by 16.4%.
Looking at specific models the Toyota Hilux became the best seller, despite losing 3.5%. The Nissan Patrol lost its leadership and dropped into 2nd, down by 12.4%. The Mitsbishi Outlander ranked 3rd, surging 284.6% and 30 spots.
EV Market Trend and Outlook
UAE’s EV segment defied the headwinds, surging by 11% to an 8.5% share. Ranking 2nd into the GCC and Levant EV rankings, the country’s sector was supported by government backing as part of the Net Zero 2025 intiative and rising consumer interest.
BYD surged 7 spots into 1st, up by 970.1% to a 26% share. Tesla fell from 1st into 2nd, down by 16.1% though still with 20.3% of the market. Toyota dropped 1 spots into 3rd, losing 23%.
Medium-Term Market Trend
The UAE vehicle market expanded rapidly between 2010 and 2015, more than doubling from 213,072 units to a peak of 408,154. Growth then stalled due to reduced purchasing power caused by falling oil revenues and tighter fiscal policies. Sales dropped sharply in 2016 (-25.1%) and kept declining through 2019, when the market began stabilizing with a modest -1% dip, totaling 238,955 units.
In 2020, the COVID-19 pandemic pushed sales down 30.5% to 166,055, the lowest level since 2008. A partial recovery followed in 2021 (+28%), though concerns over a global slowdown and oil price swings persisted. The market improved gradually in 2022 (+2.7%) and surged in 2023 (+29%), exceeding 300,000 units again in 2024 with a 19.2% rise.
EV adoption had lagged due to limited infrastructure and high costs, but stronger incentives, expanded charging networks, and more affordable Chinese models drove demand up 264.6% in 2024. Brands like Jetour played a key role by offering well-priced, tech-focused vehicles suited to UAE buyers. In 2025, total vehicle sales reached 221,987 units, with EVs accounting for 26,806 units.
Tables with sales figures
In the tables below we report sales for top 10 models
